Sun Equity Partners has acquired a four-property San Antonio multifamily portfolio from Kairoi Residential. The purchase price was $108.7 million. Rosewood Realty Group’s National Brokerage Division, helmed by Matt Yeckes and Jonathan Brody, closed the sale.
Collectively, the properties feature 1,230 rental units and more than 974,363 square feet. The price was $88,414 per unit, with a 4.96 cap rate. The four properties are Park Vista Apartment Homes at 5470 W. Military Drive, built in 1986; Pearl Park Apartment Homes at 5100 NW Loop 410, built in 1974; Merida Apartment Homes at 2167 NE Loop 410, built in 1974; and La Silva Apartment Homes at 3903 Barrington St., built in 1964.
Up and coming
“When the sellers who sold the property a couple days ago bought the property in 2018, cap rates were a lot higher, and these markets were just up and coming,” Brody, president of the national division for Rosewood, told Multi-Housing News.
“Now these markets are super hot. And the cap rates have gone down tremendously. And there’s a lot of interest for this type of product. In 2019, New York changed the rent laws, and did not allow rent-stabilized units to deregulate into market-rate apartments,” he added.
“So a lot of the buyers started fleeing to other states, and one of those states was Texas. These properties have upside, where buyers can go in and provide interior upgrades and deliver a better quality of life to the residents,” Brody continued. “The buyers who bought the property have a major Cap-X plan to upgrade the buildings.”
In a statement, Rosewood said its National Division closed on more than $300 million in off-market Texas multifamily real estate in the last year. This latest transaction reflects the firm’s confidence in the rapid growth of the San Antonio market by out-of-state investors.